MARKET BUZZ: Geely Up After August Sales Surge; Macquarie Sees Momentum Slowing
By Hong Kong Newsroom
HONG KONG (Sep 07) -- Geely Automobile Holdings up 2.4% at HK$19.78 following 80% jump in August vehicle sales. "YTD sales total 718,000, up 88% YoY, and close to two-thirds of its full-year target of 1.1 million units. Despite the impressive growth, we believe it will be hard to sustain the high growth rate," Macquarie says in note. "As we move into the final quarter, growth rates are likely to ease as the comparisons become more challenging." House reiterates Underperform rating with target price of HK$12.20, as it expresses discomfort over high valuations. "PER valuations at 17.8x 2017E and 15.4x 2018E are well above the sector average of 11.3x 2017E and 9.5x 2018E."
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